Hapag-Lloyd Launches Notes Offering

Hapag-Lloyd German shipping major Hapag-Lloyd has launched a euro bond offering with a volume of EUR 300 million and a maturity of seven years. As informed, the proceeds will be used for the early redemption of the company’s euro bond due in 2018 and the early partial redemption of the euro bond due in 2019. Currently, the redemption is envisaged for October this year, according to Hapag-Lloyd. On May 24, Hapag-Lloyd closed the merger with the UAE-based liner shipping company United Arab Shipping Company (UASC), expecting annual synergies of USD 435 million from 2019 onwards. A significant portion of these savings should be realized in the course of 2018, while the full amount is expected to first be reached in 2019, the company earlier said. UASC’s 58 vessels have been integrated into the fleet of Hapag-Lloyd, with Hapag-Lloyd assuming the fifth spot in terms of capacity with 230 vessels and a shared fleet capacity of approximately 1.6 million TEU.